PACRA Maintains Stability Rating of Alfalah GHP Income Fund

Alfalah GHP Income Fund (or the "Fund") is a low risk profile fund. The investment objective of the scheme is to minimize risk, construct a liquid portfolio of fixed income instruments and provide competitive returns to the unit holders. The assigned rating reflects the fund's low credit and interest rate risk profile emanating from its investment strategy. At the end of Jun'24, the Fund had allocated ~61.1% in Government securities (~58.8% in PIBs & ~2.3% in T-Bills), ~34.0% in Bank placements, ~1.8% in Sukuks, and ~3.2% in other assets. Additionally, the credit quality of the Fund in the compiled avenues were ~72.45% in AAA, ~1.4% in AA, and ~26.15% in other rated avenues. The duration of the Fund stood at 77 days in Jun’24, exposing the Fund to low interest rate risk. The WAM of the Fund stood at 1059 days at the end Jun'24, exposing the Fund to very high credit risk. However credit risk is manageable due to investments in Government securities and other high rated avenues. The top 10 investors concentration of the Fund, at Jun’24 was ~89.87%, giving rise to very high redemption risk. The redemption risk has been managed through maintaining sufficient liquid assets.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Alfalah Asset Management Limited (Formerly: Alfalah GHP Investment Management Limited) was incorporated on October 18, 2004 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to manage open-ended mutual funds and offer investment advisory services. The Company was established as joint venture Non-Banking Finance Company by Bank Alfalah Limited and GHP Arbitrium. The Company provides a wide range of mutual funds and pension funds both in conventional and Shariah compliant category. The Company also provides investment advisory services to HNW individuals and corporate clients.
The Company’s board of directors comprises eight members including the Chairman and the Chief Executive Officer. The board is dominated by representatives of MAB Investments and Bank Alfalah Limited. The board has two independent and five non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 189bln at end Jun'24.